Date Published 17 September 2012
Asking prices on Rightmove dropped for the third month in a row, the portal reported this morning.
The average asking price of a property new to the market is now £234,858, down from August’s £236,260. Property coming to the market is £11,000 cheaper than it was three months ago.
Despite the 0.6% monthly drop, asking prices are still – just – ahead of last year, by 0.7%.
More interestingly, asking prices are unchanged from five years ago. In September 2007, the month of the run on Northern Rock, they stood at £235,176.
Miles Shipside, housing market analyst at Rightmove, said: `This year’s extended summer holiday period has left new sellers’ asking prices almost the same as a year ago and, intriguingly, five years ago too.
`In truth, the state of the housing market is little different now to this time last year, and prices have stagnated as neither buyers or sellers have been forced to change their behaviour in sufficient quantities to stimulate greater activity.
`However, back in 2007, few would have believed that house prices would still be the same in five years’ time.
`This would have been in the context of the previous five-year period to 2007 seeing an average rise of 55%.
`Equally hard to predict would be the extreme changes the housing market has undergone.
`While the average new seller’s asking price has remained virtually the same since September 2007, market conditions are much changed. They are patchy and localised and vary markedly for the many different buyer and seller segments.`
He said that credit crunch winners included home owners in London, where prices have shot up 18.7% in the last five years to stand at £456,237, and cash-rich house buyers.
Credit crunch losers included people in the North, those trying to down-size to release equity for retirement, people with insufficient equity or in negative equity who were unable to fund their next move, and tenants wanting to buy but unable to save for a deposit.
Rightmove asking prices are still far higher than Land Registry, Nationwide and Halifax selling prices. Halifax is currently quoting £160,256, Nationwide £164,729 (both for August) and Land Registry £162,900 for July.